The stock market is in an out-and-out panic at the present time. We've got forced liquidations, deleveraging, and hedge fund dumping all happening at the same time. And while we do believe that we are close to the end of this debacle, we see no reason to be a hero at this time.

Down 500+ Points.Remember the market is a forward indicator. We are looking 6 months out.

Good call, bettor - probably not a bad idea to sell if it rallies on Turnaround Tuesday.

Ken, relax, this is NOT "panic selling". Panic selling would bring it down much harder. We may get there (eventually), we may not. This is the typical pounding of bear market. Wall Street also factoring in the likelihood of Obama & nobody's gonna wait till election day to sell that possibility.

Rail, let me ask you something and I do not mean this to be insulting or sarcastic: yes, prices on many things are up but if you took a smart mortgage, minimized your credit card usage, keep up to date on your investments and 401K and also have a reasonably safe job, do you not think you cant get through this?

This is the closest thing to the great depression that all of us will see. The wealth destruction is unbelievable and the unemployment and inflation are going to shock alot of people in the next year or too. I have sold 50% of all positions over the last 3 months, I would wait until the second half of next year to look for cash rich companies on the cheap. The market should get a nice rally soon maybe 1200 points and I would advise raising cash into the rally.

I agree Kenneth, but I don't think the election has anything to do with it, historically election years are very good for the market, especially democratic. The credit markets are completely frozen up and you will see ok earnings reports coming out this month but the warnings for the next quarter are going to be unbelievably bad. Business has slowed like nothing seen in the last 50 years due to this credit crisis. This is as serious a problem I have seen in 25 years. I think it will make the last 3 recessions seem like a party, if a depression comes we are all going to be in trouble. There could be alot of civil unrest and riots.

Rail, let me ask you something and I do not mean this to be insulting or sarcastic: yes, prices on many things are up but if you took a smart mortgage, minimized your credit card usage, keep up to date on your investments and 401K and also have a reasonably safe job, do you not think you cant get through this?

Absolutely, if you did and have all those things. But that's not the majority. If a financial crisis truly hits America, the repo man will be in full effect. Look at the foreclosure rate and the economy hasn't even hit bottom yet. Everything is on credit and many of Americans don't own anything outright. Don't have the money, can't make the payments, repo man come your way.